Laptop Loans

All students must have a laptop, especially in this day and age with hybrid learning systems in place. However, laptops are expensive, and not all students can afford to buy one. 

Fortunately, laptop loans exist so that they can finance their education. This article will discuss how to get one!

What this article covers:

What Are Student Loans for Laptops?

Students may choose to take out loans to finance buying a laptop. There are several different types of loans you can take out that can allow you to purchase a computer at a reasonable price. 

In most cases, you’ll be able to repay the student loan within 12 months. How long you have to pay it back usually depends on several factors like how much the computer you need costs. 

laptop loans

Types of Laptop Loans for Students

Students can look into different kinds of loans to finance their devices. Here are a few of them that you should consider: 

Short-Term Loans

Short-term loans are personal loans that are quick to apply for and only need a few criteria to be fulfilled to get one. 

They have high-interest rates and fees, so they aren’t the best option for you if you won’t be able to pay them back quickly. 

Unsecured Personal Loan

A second type of loan you can take out to finance your laptop is an unsecured personal loan, which involves borrowing money from a lender without securing it with an asset. A secured vs unsecured loan means you secure the loan with some sort of collateral. 

In an unsecured personal loan, like a medical loan, you get the money immediately and can pay for your laptop. This works the same as some other emergency loans like weekend loans. 

It’s essential to remember that most unsecured personal loans are of much higher value than the cost of a computer, making over-borrowing a risk. 

You’ll also need to pay interest payments during the course of the loan. This can incur more costs if unsupervised.

laptop loan

Student Loan

If you’re a student, you can also choose to take out a student loan. The Australian government offers the Higher Education Loan Program (HELP) for students who need help financing their educational journeys. 

The HELP loan limits are around 110,000 Australian dollars for most students. They can also reach 160,000 dollars if you study courses like medicine or dentistry. You can also take out VET student loans.  

Many Australian universities also offer programs where they lend students laptops for free or a small fee while they save money to buy them. Check if your university has such a program, which could help immensely. 

Eligibility Requirements

Depending on the loan you take out, there are different eligibility requirements that you’ll need to fulfil. The eligibility for these loans will also differ whether you borrow from a bank or other financial institution. 

However, in general, most loans have the following eligibility criteria:  

  • Must be 18 years or older or have the loan cosigned by a guardian. 
  • Must be an Australian resident or permanent citizen 
  • Must have a regular income (or have their guardian have a steady source of income), so this isn’t one of the loans for unemployed 
  • Must have a good credit rating (or their guardian has a good credit rating) 

laptop loans for students

How to Choose a Student Loan for a Laptop

To choose the best loan for your laptop, you must compare several options to ensure you get the best possible loan. To properly compare, you should look at the following factors: 

Additional Fees

Always look into additional fees when choosing and signing for a loan, as they can build up over time and become a significant number. 

Look at possible costs like establishment fees, monthly fees and penalties for missing a payment, especially if you feel you might not be able to be consistent with one of the payments. 

Interest Rate

One of the most obvious things to compare is the low-interest rate and whether you are going for a fixed or variable-rate loan. A fixed interest rate loan fixes the interest rate for the length of your loan, while a variable rate might increase. 

Remember that variable rates might be more flexible and have less severe penalties for early or late payments. Variable rates also have longer payback rates that might let you pay them back for up to seven years. 

Loan Terms

Finally, be sure to consider loan terms like longer and shorter loan terms. Personal loans usually last from one to seven years, so choose loan terms that are suitable for you. 

A point to consider is that though longer loan terms make individual payments smaller, you might have to pay more in interest over a more extended period of time. This can result in an overall more expensive charge over the long run. 

Some retail stores also have options to pay for products over a period of 6 to 18 months with low-interest rates or none at all. If this is feasible for you, this might be a better option than going for other loans. 

student loan for laptop

Student Laptop Loan and Bad Credit

Even if you have a bad credit history, you might still be able to get a laptop loan, though you might have more limited options. 

For example, loans with no interest usually don’t check credit history before handing out loans. You can also find short-term loans that don’t consider credit history. 

However, you should constantly monitor loan terms as they might take advantage of this bad credit history.

Final Words 

A laptop is a critical asset, especially if you are getting an education as a student. They are often expensive, so many students take out laptop loans to finance their educational journeys.

Several types of loans exist, like short-term loans, unsecured personal loans, and student loans, so be sure to consider all loan options before choosing the loan for you.

When comparing loans, look into additional fees, interest rates, and loan terms so you don’t fall victim to a bad loan.

Was the guide helpful? Check out these extra resources to delve deeper: